S T A T E O F N E W Y O R K
________________________________________________________________________
4017
2017-2018 Regular Sessions
I N A S S E M B L Y
January 30, 2017
___________
Introduced by M. of A. LENTOL -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the real property tax law, in relation to exemption of
new multiple dwellings from local taxation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 421-a of the real property tax law is amended by
adding a new subdivision 18 to read as follows:
18. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION:
(I) "421-A BENEFITS" SHALL MEAN EXEMPTION FROM REAL PROPERTY TAXATION
PURSUANT TO THIS SUBDIVISION.
(II) "CONDOMINIUM OR COOPERATIVE AFFORDABILITY OPTION" SHALL ONLY
APPLY TO A HOMEOWNERSHIP PROJECT, OF WHICH ONE HUNDRED PERCENT OF THE
UNITS SHALL: (A) HAVE AN ACTUAL SALES PRICE THAT SHALL BE AFFORDABLE TO
AN INDIVIDUAL OR FAMILY WHOSE INCOME AT THE TIME OF THE SALE DOES NOT
EXCEED ONE HUNDRED SIXTY-FIVE PERCENT OF THE AREA MEDIAN INCOME ADJUSTED
FOR FAMILY SIZE OR (B) BE OFFERED FOR RENT TO AN INDIVIDUAL OR FAMILY
WHOSE INCOME AT THE TIME OF OCCUPANCY DOES NOT EXCEED EIGHTY PERCENT OF
THE AREA MEDIAN INCOME ADJUSTED FOR FAMILY SIZE SUCH A UNIT SHALL NOT BE
RENTED ON A TEMPORARY, TRANSIENT OR SHORT-TERM BASIS. EVERY LEASE AND
RENEWAL THEREOF FOR SUCH UNIT RENTAL SHALL BE FOR A TERM OF ONE OR TWO
YEARS, AT THE OPTION OF THE TENANT.
(III) "AGENCY" SHALL MEAN THE DEPARTMENT OF HOUSING PRESERVATION AND
DEVELOPMENT.
(IV) "APPLICATION" SHALL MEAN AN APPLICATION FOR 421-A BENEFITS.
(V) "AREA MEDIAN INCOME" SHALL MEAN THE AREA MEDIAN INCOME ESTABLISHED
BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR A
SUCCESSOR AGENCY.
(VI) "COMMENCEMENT DATE" SHALL MEAN, WITH RESPECT TO ANY ELIGIBLE
MULTIPLE DWELLING, THE DATE UPON WHICH EXCAVATION AND CONSTRUCTION OF
INITIAL FOOTINGS AND FOUNDATIONS LAWFULLY BEGINS IN GOOD FAITH OR, FOR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03927-01-7
A. 4017 2
AN ELIGIBLE CONVERSION, THE DATE UPON WHICH THE ACTUAL CONSTRUCTION OF
THE CONVERSION, ALTERATION OR IMPROVEMENT OF THE PRE-EXISTING BUILDING
OR STRUCTURE LAWFULLY BEGINS IN GOOD FAITH.
(VII) "COMPLETION DATE" SHALL MEAN THE DATE UPON WHICH THE LOCAL
DEPARTMENT OF BUILDINGS ISSUES THE FIRST TEMPORARY OR PERMANENT CERTIF-
ICATE OF OCCUPANCY COVERING ALL RESIDENTIAL AREAS OF AN ELIGIBLE MULTI-
PLE DWELLING.
(VIII) "CONSTRUCTION PERIOD" SHALL MEAN, WITH RESPECT TO ANY ELIGIBLE
MULTIPLE DWELLING, A PERIOD: (A) BEGINNING ON THE LATER OF THE COMMENCE-
MENT DATE OF SUCH ELIGIBLE MULTIPLE DWELLING OR THREE YEARS BEFORE THE
COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELLING; AND (B) ENDING ON
THE DAY PRECEDING THE COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELL-
ING.
(IX) "ELIGIBLE CONVERSION" SHALL MEAN THE CONVERSION, ALTERATION OR
IMPROVEMENT OF A PRE-EXISTING BUILDING OR STRUCTURE RESULTING IN A
MULTIPLE DWELLING IN WHICH NO MORE THAN FORTY-NINE PERCENT OF THE FLOOR
AREA CONSISTS OF SUCH PRE-EXISTING BUILDING OR STRUCTURE.
(X) "ELIGIBLE MULTIPLE DWELLING" SHALL MEAN A HOMEOWNERSHIP PROJECT
CONTAINING FOUR OR MORE DWELLING UNITS CREATED THROUGH NEW CONSTRUCTION
OR ELIGIBLE CONVERSION FOR WHICH THE COMMENCEMENT DATE IS AFTER DECEMBER
THIRTY-FIRST, TWO THOUSAND FIFTEEN AND ON OR BEFORE JUNE FIFTEENTH, TWO
THOUSAND NINETEEN, AND FOR WHICH THE COMPLETION DATE IS ON OR BEFORE
JUNE FIFTEENTH, TWO THOUSAND TWENTY-THREE.
(XI) "ELIGIBLE SITE" SHALL MEAN EITHER: (A) A TAX LOT CONTAINING AN
ELIGIBLE MULTIPLE DWELLING; OR (B) A ZONING LOT CONTAINING TWO OR MORE
ELIGIBLE MULTIPLE DWELLINGS THAT ARE PART OF A SINGLE APPLICATION.
(XII) "FLOOR AREA" SHALL MEAN THE HORIZONTAL AREAS OF THE SEVERAL
FLOORS, OR ANY PORTION THEREOF, OF A DWELLING OR DWELLINGS, AND ACCESSO-
RY STRUCTURES ON A LOT MEASURED FROM THE EXTERIOR FACES OF EXTERIOR
WALLS, OR FROM THE CENTER LINE OF PARTY WALLS.
(XIII) "HOMEOWNERSHIP PROJECT" SHALL MEAN A MULTIPLE DWELLING OR
PORTION THEREOF OPERATED AS CONDOMINIUM OR COOPERATIVE HOUSING, HOWEVER,
IT SHALL NOT INCLUDE A MULTIPLE DWELLING OR PORTION THEREOF OPERATED AS
COOPERATIVE OR CONDOMINIUM HOUSING LOCATED WITHIN THE BOROUGH OF MANHAT-
TAN.
(XIV) "MULTIPLE DWELLING" SHALL HAVE THE MEANING SET FORTH IN THE
MULTIPLE DWELLING LAW.
(XV) "RESTRICTION PERIOD" SHALL MEAN A PERIOD COMMENCING ON THE
COMPLETION DATE AND EXPIRING ON THE TWENTIETH ANNIVERSARY OF THE
COMPLETION DATE.
(XVI) "TWENTY YEAR BENEFIT" SHALL MEAN: (A) FOR THE CONSTRUCTION PERI-
OD, A ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER
THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS; (B) FOR THE FIRST FOURTEEN
YEARS OF THE RESTRICTION PERIOD, A ONE HUNDRED PERCENT EXEMPTION FROM
REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS;
AND (C) FOR THE FINAL SIX YEARS OF THE RESTRICTION PERIOD, A TWENTY-FIVE
PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS
FOR LOCAL IMPROVEMENTS; PROVIDED, HOWEVER, THAT NO EXEMPTION UNDER
CLAUSE (B) OR (C) OF THIS SUBPARAGRAPH SHALL BE GIVEN FOR ANY UNIT WHICH
DOES NOT QUALIFY UNDER THE CONDOMINIUM OR COOPERATIVE AFFORDABILITY
REQUIREMENT.
(B) BENEFIT. IN CITIES HAVING A POPULATION OF ONE MILLION OR MORE,
NOTWITHSTANDING THE PROVISIONS OF ANY OTHER SUBDIVISION OF THIS SECTION
OR OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, A HOMEOWNERSHIP
PROJECT THAT MEETS ALL OF THE REQUIREMENTS OF THIS SUBDIVISION SHALL
RECEIVE A TWENTY YEAR BENEFIT.
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(C) TAX PAYMENTS. IN ADDITION TO ANY OTHER AMOUNTS PAYABLE PURSUANT TO
THIS SUBDIVISION, THE OWNER OF ANY ELIGIBLE SITE RECEIVING 421-A BENE-
FITS SHALL PAY, IN EACH TAX YEAR IN WHICH SUCH 421-A BENEFITS ARE IN
EFFECT, REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:
(I) WITH RESPECT TO EACH ELIGIBLE MULTIPLE DWELLING CONSTRUCTED ON
SUCH ELIGIBLE SITE, REAL PROPERTY TAXES ON THE ASSESSED VALUATION OF
SUCH LAND AND ANY IMPROVEMENTS THEREON IN EFFECT DURING THE TAX YEAR
PRIOR TO THE COMMENCEMENT DATE OF SUCH ELIGIBLE MULTIPLE DWELLING, WITH-
OUT REGARD TO ANY EXEMPTION FROM OR ABATEMENT OF REAL PROPERTY TAXATION
IN EFFECT DURING SUCH TAX YEAR, WHICH REAL PROPERTY TAXES SHALL BE
CALCULATED USING THE TAX RATE IN EFFECT AT THE TIME SUCH TAXES ARE DUE;
AND
(II) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
(D) LIMITATION ON BENEFITS FOR NON-RESIDENTIAL SPACE. IF THE AGGREGATE
FLOOR AREA OF COMMERCIAL, COMMUNITY FACILITY AND ACCESSORY USE SPACE IN
AN ELIGIBLE SITE, OTHER THAN PARKING WHICH IS LOCATED NOT MORE THAN
TWENTY-THREE FEET ABOVE THE CURB LEVEL, EXCEEDS TWELVE PERCENT OF THE
AGGREGATE FLOOR AREA IN SUCH ELIGIBLE SITE, ANY 421-A BENEFITS SHALL BE
REDUCED BY A PERCENTAGE EQUAL TO SUCH EXCESS.
(E) CALCULATION OF BENEFIT. BASED ON THE CERTIFICATION OF THE AGENCY
CERTIFYING THE APPLICANT'S ELIGIBILITY FOR 421-A BENEFITS, THE ASSESSORS
SHALL CERTIFY TO THE COLLECTING OFFICER THE AMOUNT OF TAXES TO BE
EXEMPTED.
(F) AFFORDABILITY REQUIREMENTS. DURING THE RESTRICTION PERIOD, A
HOMEOWNERSHIP PROJECT SHALL COMPLY WITH SUBPARAGRAPH (II) OF PARAGRAPH
(A) OF THIS SUBDIVISION. FAILURE TO COMPLY WITH THE PROVISIONS OF THIS
PARAGRAPH SHALL RESULT IN REVOCATION OF ANY 421-A BENEFITS FOR THE PERI-
OD OF SUCH NON-COMPLIANCE.
(G) LOWER INCOME RENTALS. NOTHING IN THIS SUBDIVISION, OR ANY OTHER
PROVISION OF LAW SHALL: (I) PROHIBIT THE OCCUPANCY OF A UNIT BY INDIVID-
UALS OR FAMILIES WHOSE INCOME AT ANY TIME IS LESS THAN THE MAXIMUM
PERCENTAGE OF THE AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, SPECI-
FIED FOR SUCH UNIT PURSUANT TO THIS SUBDIVISION, OR (II) PROHIBIT THE
OWNER OF AN ELIGIBLE SITE FROM REQUIRING, UPON INITIAL RENTAL OR UPON
ANY RENTAL FOLLOWING A VACANCY, THE OCCUPANCY OF ANY UNIT BY SUCH LOWER
INCOME INDIVIDUALS OR FAMILIES.
(H) AGENCY REQUIREMENTS. THE AGENCY SHALL ESTABLISH BY RULE REQUIRE-
MENTS FOR THE MARKETING AND MONITORING OF ANY HOMEOWNERSHIP PROJECT THAT
IS GRANTED AN EXEMPTION PURSUANT TO THIS SUBDIVISION. SUCH REQUIREMENTS
SHALL INCLUDE: (I) IF QUALIFYING BY SALES PRICE, CERTIFICATION BY AN
ARCHITECT OR ENGINEER VERIFYING NUMBER OF BEDROOMS AND A CERTIFIED
PUBLIC ACCOUNTANT VERIFYING AFFORDABLE SALES PRICE AND (II) IF QUALIFY-
ING BY RENTAL, THE FILING ANNUALLY OF AN AFFIDAVIT BY THE OWNER CERTIFY-
ING THAT A UNIT IS RENTED AT OR BELOW EIGHTY PERCENT OF THE AREA MEDIAN
INCOME BASED ON HOUSEHOLD SIZE.
(I) CONCURRENT EXEMPTIONS OR ABATEMENTS. AN ELIGIBLE MULTIPLE DWELLING
RECEIVING 421-A BENEFITS SHALL NOT RECEIVE ANY EXEMPTION FROM OR ABATE-
MENT OF REAL PROPERTY TAXATION UNDER ANY OTHER LAW.
(J) VOLUNTARY RENUNCIATION OR TERMINATION. NOTWITHSTANDING THE
PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, AN
OWNER SHALL NOT BE ENTITLED TO VOLUNTARILY RENOUNCE OR TERMINATE ANY
421-A BENEFITS UNLESS THE AGENCY AUTHORIZES SUCH RENUNCIATION OR TERMI-
NATION IN CONNECTION WITH THE COMMENCEMENT OF A NEW TAX EXEMPTION PURSU-
ANT TO EITHER THE PRIVATE HOUSING FINANCE LAW OR SECTION FOUR HUNDRED
TWENTY-C OF THIS TITLE.
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(K) TERMINATION OR REVOCATION. THE AGENCY MAY TERMINATE OR REVOKE
421-A BENEFITS FOR NONCOMPLIANCE WITH THIS SUBDIVISION. IF 421-A BENE-
FITS ARE TERMINATED OR REVOKED FOR NONCOMPLIANCE WITH THIS SUBDIVISION,
A HOMEOWNERSHIP PROJECT SHALL CONTINUE TO COMPLY WITH SUBPARAGRAPH (II)
OF PARAGRAPH (A) OF THIS SUBDIVISION AND ALL OTHER REQUIREMENTS OF THIS
SUBDIVISION FOR THE RESTRICTION PERIOD AND ANY ADDITIONAL PERIOD
EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS IF THE 421-A BENEFITS HAD NOT
BEEN TERMINATED OR REVOKED.
(L) POWERS CUMULATIVE. THE ENFORCEMENT PROVISIONS OF THIS SUBDIVISION
SHALL NOT BE EXCLUSIVE, AND ARE IN ADDITION TO ANY OTHER RIGHTS, REME-
DIES, OR ENFORCEMENT POWERS SET FORTH IN ANY OTHER LAW OR AVAILABLE AT
LAW OR IN EQUITY.
(M) APPLICATIONS. (I) THE APPLICATION WITH RESPECT TO ANY ELIGIBLE
MULTIPLE DWELLING SHALL BE FILED WITH THE AGENCY NOT LATER THAN ONE YEAR
AFTER THE COMPLETION DATE OF SUCH ELIGIBLE MULTIPLE DWELLING.
(II) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
LAW TO THE CONTRARY, THE AGENCY MAY REQUIRE BY RULE THAT APPLICATIONS BE
FILED ELECTRONICALLY.
(III) THE AGENCY MAY RELY ON CERTIFICATION BY AN ARCHITECT OR ENGINEER
OR CERTIFIED PUBLIC ACCOUNTANT SUBMITTED BY AN APPLICANT IN CONNECTION
WITH THE FILING OF AN APPLICATION. A FALSE CERTIFICATION BY SUCH ARCHI-
TECT OR ENGINEER OR CERTIFIED PUBLIC ACCOUNTANT SHALL BE DEEMED TO BE
PROFESSIONAL MISCONDUCT PURSUANT TO SECTION SIXTY-FIVE HUNDRED NINE OF
THE EDUCATION LAW. ANY LICENSEE FOUND GUILTY OF SUCH MISCONDUCT UNDER
THE PROCEDURES PRESCRIBED IN SECTION SIXTY-FIVE HUNDRED TEN OF THE
EDUCATION LAW SHALL BE SUBJECT TO THE PENALTIES PRESCRIBED IN SECTION
SIXTY-FIVE HUNDRED ELEVEN OF THE EDUCATION LAW, AND SHALL THEREAFTER BE
INELIGIBLE TO SUBMIT A CERTIFICATION PURSUANT TO THIS SUBDIVISION.
(N) FILING FEE. THE AGENCY MAY REQUIRE A FILING FEE OF THREE THOUSAND
DOLLARS PER DWELLING UNIT IN CONNECTION WITH ANY APPLICATION. HOWEVER,
THE AGENCY MAY PROMULGATE RULES IMPOSING A LESSER FEE FOR ELIGIBLE SITES
CONTAINING ELIGIBLE MULTIPLE DWELLINGS CONSTRUCTED WITH THE SUBSTANTIAL
ASSISTANCE OF GRANTS, LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR
LOCAL GOVERNMENTAL AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR
THE DEVELOPMENT OF AFFORDABLE HOUSING.
(O) RULES. THE AGENCY SHALL PROMULGATE RULES TO CARRY OUT THE
PROVISIONS OF THIS SUBDIVISION.
(P) AUTHORITY OF CITY TO ENACT LOCAL LAW. EXCEPT AS OTHERWISE SPECI-
FIED IN THIS SUBDIVISION, A CITY TO WHICH THIS SUBDIVISION IS APPLICABLE
MAY ENACT A LOCAL LAW TO RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY
FOR OR THE SCOPE OR AMOUNT OF 421-A BENEFITS IN ANY MANNER, PROVIDED
THAT SUCH LOCAL LAW MAY NOT GRANT 421-A BENEFITS BEYOND THOSE PROVIDED
IN THIS SUBDIVISION AND PROVIDED FURTHER THAT SUCH LOCAL LAW SHALL NOT
TAKE EFFECT SOONER THAN ONE YEAR AFTER IT IS ENACTED. THE PROVISIONS OF
SECTIONS 11-245 AND 11-245.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK OR OF ANY OTHER LOCAL LAW OF THE CITY OF NEW YORK THAT WERE
ENACTED ON OR BEFORE THE EFFECTIVE DATE OF THIS PARAGRAPH SHALL NOT
RESTRICT, LIMIT OR CONDITION THE ELIGIBILITY FOR OR THE SCOPE OR AMOUNT
OF 421-A BENEFITS PURSUANT TO THIS SUBDIVISION.
§ 2. Subparagraphs (v) and (xxxiv) of paragraph (a) of subdivision 16
of section 421-a of the real property tax law, as added by section 63-c
of part A of chapter 20 of the laws of 2015, are amended to read as
follows:
(v) "Affordability option D" shall only apply to a homeownership
project[, of which one hundred percent of the units shall have an aver-
age assessed value not to exceed sixty-five thousand dollars upon the
A. 4017 5
first assessment following the completion date and where each owner of
any such unit shall agree, in writing, to maintain such unit as their
primary residence for no less than five years from the acquisition of
such unit] WHICH COMPLIES WITH SUBDIVISION EIGHTEEN OF THIS SECTION.
(xxxiv) "Twenty year benefit" shall [mean: (A) for the construction
period, a one hundred percent exemption from real property taxation,
other than assessments for local improvements; (B) for the first four-
teen years of the restriction period, a one hundred percent exemption
from real property taxation, other than assessments for local improve-
ments, provided, however, that no exemption shall be given for any
portion of a unit's assessed value that exceeds $65,000; and (C) for the
final six years of the restriction period, a twenty-five percent
exemption from real property taxation, other than assessments for local
improvements, provided, however, that no exemption shall be given for
any portion of a unit's assessed value that exceeds $65,000] HAVE THE
MEANING SET FORTH IN SUBDIVISION EIGHTEEN OF THIS SECTION.
§ 3. This act shall take effect immediately; provided, however, that
the amendments to paragraph (a) of subdivision 16 of section 421-a of
the real property tax law made by section two of this act shall take
effect on the same date and in the same manner as such subdivision takes
effect pursuant to chapter 20 of the laws of 2015, as amended.